Republic of the Philippines

Zamboanga Peninsula Polytechnic State University

College of Engineering
Department of Civil Engineering
R.T. LIM BOULEVARD
ZAMBOANGA CITY, PHILIPPINES, 7000

LESSON 1
( BASIC ENTREPRENEURIAL CONCEPT)

Group 1

Sanerin Jimlano

Renz V Agpawa

Kate Andrie Fernandez

Nicole Claire F. Pagute

Submitted to:
Teacher: Shirley S. Cababat
 DIFFERENTIATE ENTREPRENEUR FROM ENTREPRENEURSHIP

1. Entrepreneurship is the process of identifying opportunities in the market place.

2. Entrepreneurship is the processes through which individuals become aware of business
ownership then develop ideas for, and initiate a business.
3. Entrepreneurship can also be defined as the process of creating something different and
better with value by devoting the necessary time and effort by assuming the accompanying
financial, psychic and social risks and receiving the resulting monetary reward and personal
satisfaction.
4. Entrepreneurship is the art of identifying viable business opportunities and mobilizing
resources to convert those opportunities into a successful enterprise through creativity,
innovation, risk taking and progressive imagination.
Entrepreneurship is a practice and a process that results in creativity, innovation and enterprise
development and growth. It refers to an individual’s ability to turn ideas into action involving
and engaging in socially-useful wealth creation through application of innovative thinking and
execution to meet consumer needs, using one’s own labor, time and ideas.
In general, the process of entrepreneurship includes five critical elements. These are:
1) The ability to perceive an opportunity.
2) The ability to commercialize the perceived opportunity i.e. innovation
3) The ability to pursue it on a sustainable basis.
4) The ability to pursue it through systematic means.
5) The acceptance of risk or failure.
Based on the above concepts of entrepreneurship,
an entrepreneur can be defined as follows:

1) An entrepreneur is any person who creates and develops a business idea and takes the risk
of setting up an enterprise to produce a product or service which satisfies customer needs.
2) An entrepreneur can also be defined as a professional who discovers a business opportunity
3) An entrepreneur is an individual who: has the ability to identify and pursue a business
opportunity
4) An entrepreneur is a person who: create the job not a job-seeker; has a dream, has a vision;
willing to take the risk and makes something out of nothing

Types of entrepreneur

1. The individual entrepreneur: An individual entrepreneur is someone who started; acquired or

franchised his/her own independent organization.
2. Intrapreneur: An Intrapreneur is a person who does entrepreneurial work within large
organization.
Who Becomes an Entrepreneur?
1) The Young Professional: Increasingly young highly educated people often with
entrepreneurial qualifications are skipping the experience of working for an established
organization and moving directly to work on establishing their own ventures.
2) The Inventor: The inventor is someone who has developed an innovation and who has
decided to make a career out of presenting that innovation to the market. It may be a new
product or it may be an idea for a new service. It may be a high-tech or it may be based on a
traditional technology.
3.The Excluded: Some people turn to an entrepreneurial career because nothing is open to
them. Displaced communities and ethnic and religious minorities have not been invited to join
the wider economic community due to a variety of social, cultural and political and historical
reasons. As a result they may form their own internal networks, trading among themselves and,
perhaps, with their ancestral countries.

Qualities of an Entrepreneur
1) Opportunity-seeking: An opportunity is a favorable set of circumstances that creates a need
for a new product, service or business. It includes access to credit,working premises, education,
trainings etc. An entrepreneur always seeks out and identifies opportunities. He/she seizes an
opportunity and converts it into a realistic and achievable goal or plan.
2) Persevering: An entrepreneur always makes concerted efforts towards the successful
completion of a goal. An entrepreneur perseveres and is undeterred by uncertainties, risks,
obstacles, or difficulties which could challenge the achievement of the ultimate goal.
3) Risk Taking: The best entrepreneurs tend to:-
 Set their own objectives where there is moderate risk of failure and take calculated risks
 Gain satisfaction from completing a job well
 Not be afraid of public opinion, skepticism
 Take responsibility for their own actions

Importance of Risk-taking
4) Demanding for Efficiency and Quality
Efficiency: Being efficient means producing results with little wasted effort.

Quality refers to:

1. improvement of goods/services to meet the customer’s need in a way that exceeds the
customer’s expectations;
5.Information-seeking: Successful entrepreneurs do not rely on guesswork and do not rely on
others for information. Instead, they spend time collecting information about their customers,
competitors, suppliers, relevant technology and markets. Gathering relevant information is
important to ensure that the entrepreneur makes well informed decisions.
6) Goal Setting. A Goal - is a general direction, or long-term aim that you want to accomplish. It
is not specific enough to be measured. It is large in scope, not necessarily time-bound, and is
something that people strive for by meeting certain objectives which will hopefully add up to
eventually achieving the goal.
An entrepreneur must have a goal and an objective which is specific, measurable, attainable
relevant, and time bound (SMART).
 Specific: Great goals are well-defined and focused. The moment you focus on a goal, your goal
becomes a magnet, pulling you and your resources toward it. The more focused your energies,
the more power you generate.
 Measurable: A goal without a measurable outcome is like a sports competition without a
scoreboard or scorekeeper. Numbers are an essential part of business. Put concrete numbers in
your goals to know if you’re on track.
 Attainable: Far too often, entrepreneurs can set goals which are beyond their reach. Dream
big and aim for the stars but keep one foot firmly based in reality.
 Relevant: Achievable business goals are based on the current conditions and realities of the
business climate.
 Time-Based: Business goals and objectives just don’t get done when there’s no time frame
tied to the goal-setting process. Whether your business goal is to increase revenue by 20% or to
find two new clients, it is important to choose a time-frame to accomplish your goal.
7) Planning: Planning is making a decision about the future in terms of what to do, when to do,
where to do, how to do, by whom to do and using what resources. An effective entrepreneur
therefore usually plans his/her activities and accounts as best as they can for unexpected
eventualities.
8) Persuasion and Networking Persuasion is a way of convincing someone to get something or
make a decision in your favor. It is inducing or taking a course of action or embracing a point of
view by means of argument, reasoning, or entreaty; to convince; to succeed in causing a person
to do or consent to something; to win someone over, as by reasoning or personal forcefulness;
to cause to believe; to induce, urge, or prevail upon successfully.

Importance of Persuasion in Business

Entrepreneurial Skills

A skill is simply knowledge which is demonstrated by action.

I) General Management Skills: These are skills required to organize the physical and financial
resources needed to run the venture. Some of the most important general management
business skills are:
a. Strategy Skills – An ability to consider the business as a whole, to understand how it fits
within its market place, how it can organize itself to deliver value to its customers, and the ways
in which it does this better than its competitors.
b. Planning Skills – An ability to consider what the future might offer, how it will impact on the
business and what needs to be done to prepare for it now.

c. marketing skill
Planning Skills – An ability to consider what the future might offer, how it will impact on the
business and what needs to be done to prepare for it now.
Financial Skills – An ability to manage money; to be able to keep track of expenditure and to
monitor cash-flow, but also an ability to assess investments in terms of their potential and their
risks.
 Project Management Skills – An ability to organize projects, to set specific objectives, to set
schedules and to ensure that the necessary resources are in the right plat of the right time.
 Time Management Skills – An ability to use time productively, to be able to priorities
important jobs and to get things done to schedule.
People Management Skills: Businesses are made by people. A business can only be successful if
the peoples who make it up are properly directed and are committed to make an effort on its
behalf. An entrepreneurial venture also needs the support of people from outside the
organization such as customers, suppliers and investors. To be effective, an entrepreneur needs
to demonstrative a wide variety of skills in the way he/she deals with other peoples.

Some of the more important skills we might include under this heading are:
Communication Skills – An ability to use spoken and written language to express ideas and
inform others.
 Leadership Skills – An ability to inspire people to work in a specific way and to undertake the
tasks that are necessary for the success of the venture.
 Motivation Skills – An ability to enthuse people and get them to give their full commitment to
the tasks in hand. Being able to motivate demands an understanding of what drives people and
what they expect from their job
Delegation Skills – An ability to allocate tasks to different people. Effective delegation involves
more than instructing. It demands a full understanding of the skills that people possess how
they use them and how they might be developed to fulfill future
 Negotiation Skills – An ability to understand what is wanted from a siturations, what is
motivating others in that situation and recognize the possibilities of maximizing the outcomes
for all parties..

EVALUATE THE ROLE OF ENTREPRENEUR IN THE ECONOMIC DEVELOPMENT

Entrepreneurship plays a significant part in economic growth. Entrepreneurs influence the
economy through creating new employment and opportunities, stimulating innovation, and
creating new markets, products, and services. They also construct enterprises and increase
their own personal wealth. You may get a thorough description of the part that
entrepreneurship plays in the economic development of a nation in this article
9 ROLES OF ENTREPRENEURS IN THE ECONOMIC
1. Raises Standard of Living
A significant role of entrepreneurship in economic development is that it can greatly enhance
the standard of living for individuals and communities
2.Economic Independence
Entrepreneurship can be a path to economic independence for both the country and the
entrepreneur.
3.Benefits of New Firms and Businesses
Entrepreneurs identify market needs and develop solutions through their products and services
to begin their business venture.
4.Creation of Jobs
Entrepreneurship is a pivotal driver of job creation.
5.Encourages Capital Formation
Capital formation is the process of accumulating resources, such as savings and investments
6.Elimination of Poverty
Entrepreneurship has the potential to lift people out of poverty
7.Community Development
Entrepreneurship promotes economic growth, provides access to goods and services
8.Optimal Use of Resources
Entrepreneurship can help identify market opportunities
9.Increases Gross National Product and Per Capita Income
Entrepreneurship can play a significant role in increasing economic growth and prosperity by
increasing Gross National Product (GNP) and Per Capita Income (PCI).

CITE THE IMPORTANCE OF ENTREPRENEURS IN THE ECONOMY

•Drives economic growth and creates new job

-By creating new products and services, they stimulate new employment, which ultimately
results in the acceleration of economic development
• Encourages innovation by bringing new ideas, products, and services to the market
-improvement and discovery of new product aligned with people needs in the market.
•Contributes to social change b developing products or services that reduce people’s
dependence on outdated technologies.
•Addresses social and economic problems by creating solutions that meet the needs of society
•Enables competition which improves business efficiency and lowers prices for consumers